2 What does ERP mean?A. Energetic Reporting Program B. Everlasting Relaxation and Peace C. Everyone Reacts in Panic D. Enterprise Resource Planning
3 Topics Scope of the project Benefits Issues related to: -- Procurement -- Management-- Accounting
4 Scope of the ERP Project Joint ERP procurement and implementation by:City of TampaHillsborough County:Board of County CommissionersClerk of Circuit Court / ComptrollerCivil Service Board
5 ERP System Goals Increase efficiency Improve managerial and operational effectivenessPromote intergovernmental cooperation and participationReduce riskMaximize human capital
6 ERP System Objectives Reduce total costs of system ownership Streamline business processes through improved system integrationStandardize business practices across organizationsPromote accountabilityImprove ability to track and measure performance
7 ERP System Objectivesf. Improve procurement management g. Eliminate redundant systems h. Protect sensitive data i. Improve ability to adapt to changing business and technical environment j. Reduce recovery time, if there is a disaster k. Better receivables management
8 ERP System Objectivesl. Instill common skill set across local government m. Attract, develop and retain talent
9 Why are we doing this now? We currently use FAMIS, which is no longer supported. The number of separate computer systems will increase and become entrenched if we do not go to a single ERP system.
10 What did we buy?Licenses for Oracle E-Business Suite (EBS) version 12, Kronos, JobAps, and VertexAST Corporation is the system integrator consultant for implementationOracle on Demand will host the system for both the City and the County
11 ERP Contract Overview5-Year Cost Summary ($000) Separate billing
12 Subledgers/Modules Purchased General LedgerPurchasing and InventoryAccounts Payable, iSupplier, and iExpenseAccounts ReceivableCash Management and Treasury ManagementFixed AssetsProjects and GrantsBusiness Intelligence (OBIEE)
13 Subledgers/Modules Purchased Continued:Human Resources and Self ServiceBudgeting (Hyperion)Payroll (Kronos)Others
14 Project PhasesWave 1 Financial, Procurement, Projects/Grants, Core HR, Business Intelligence, ReportingWave 2 Code Enforcement (city of Tampa only)Wave 3 JobAps, Benefits
15 Project Phases Wave 4 Self-Service applications, Advanced Procurement Wave 5 Time Entry, Workforce Scheduling, and PayrollWave 6 Planning and Budgeting
17 Benefits of Joint Procurement and Implementation Same consulting firm handles bothSave about $6.6 million
18 Benefits of Joint Implementation Both City and County personnel assigned – twice the involvement for a higher quality implementationCounty and City personnel learn from each other and open up lines of communication for future collaboration.
19 Benefits of Joint Implementation Possible savings on procurements by making purchases against City contracts, and vice versa.Employees would have more marketable skills and job opportunities across employers using the same system.
20 Project “Infrastructure” Joint office space set up for the project at the CountyCounty network IDs assigned for and scheduler access to all members of the ERP team including the AST consultantsDedicated conference roomsDedicated training rooms
21 Project “Infrastructure” SharePoint set up for ERP for plans, documents, schedules, user guidesChange managers at AST, County, and CityPurchased Oracle books for office library
23 How do you set the requirements? -- hired a consultant to guide us through the process.-- If the requirements are too stringent, all responses will be “nonresponsive.”-- If the requirements are too vague, they will not be useful.
24 When will the core financial system go live? Our choice: April 1, which was pushed to May 1 due to a delay in negotiating the contract.Benefits: It gives us several months before the busy fiscal year-end period to work out any problems. It avoids the busy year-end period of time.
26 ModificationsWhen Oracle upgrades are done, all modifications will need to be re-established (at a high cost in consultant or staff time).We are trying to minimize the number of customizations.Modifications are paid for jointly or separately depending on who benefits.
27 Historic DataData conversion is difficult and expensive. How much historical data should be converted?Our decision: 2 years of historic data and the current year in detail.Trying to convert data on active grants and projects (which are set up as inception-to- date).
28 New Business Processes? 3-way match vs. Instant 3-way matchExpense reports vs. iExpenseJournal Entries after the fact vs. time reportingCash controls vs. allocating budget by
29 Getting Information From Old System Reports from old system will be available on Spoolview (report viewing software).Old system with data through April 30, 2013, will be available for viewing only until the new budget system is implemented (Wave 6).
30 Transaction DetailSystem Support Department will download transaction detail, year by year, just in case the details are needed for audits by:- Federal Emergency Management Agency- Arbitrage audits by the Internal Revenue Service,- Grant audits by state or federal grantors.
31 Superusers & TrainingWhat “superusers” do and why is it important to identify them early in the process?How will training be handled during and after implementation of all ERP waves?
32 Getting Staff Involvement Joint City/County meetings on requirementsJoint City/County demonstrations by potential vendorsMeetings early in the process to discuss “pain points” associated with the old systems
33 Why do we need Change Management? We overestimate the disadvantages of change and underestimate the advantages of change.Adapting to change is difficult. Some people fear losing their jobs to “automation.”Some sharing between City/County/AST Change managers
35 General Ledger Objectives Meets statutory reporting needsMeets management reporting needsAs simple as possibleRoom for growth and additional entitiesBOCC and Clerk share General LedgerFor example, natural accounts are shared
36 Accounting Segments – General Ledger FundCost Center (Department)Natural Account (General Ledger Account)Sub Account (Function)Activity (for management tracking*Project (to assist reconciliation with subledger)Future
37 Accounting Segments – Projects and Grants Subledger P - Project number for grants and capital projects O - Organization (i.e. department) E - Expenditure natural account T - Task, a subdivision of a project A - Award, the funding source for a grant or capital project
38 Capitalization of ERP Costs Capitalize internally generated software such as actual programming work.We capitalize the ERP Director’s time, the salary cost of the consultant hired as the County’s project manager, and the cost of AST system integrator.
39 Shared Vendor FileThe same vendor file will be used for the City and County. But the vendor may be 1099 reportable at one entity and not the other.Solution: Use a code to distinguish City and County vendors, but use the same file. And possibly vendor maintenance by one area for both entities.
40 How do you know if the conversion was successful? Oracle Insight – an Oracle program to compare metrics before and after to see measure the change brought about by the ERP system.
41 Other Governments With ERP Systems City of St. Petersburg, FL (Oracle)Polk County, FL (Oracle)Pinellas County, FL (Oracle)Loudoun County/Loudoun County School Board (Oracle)
42 Hillsborough County Contacts Ajay Gajjar Assistant Finance Director Hillsborough County Clerk of Circuit Court (813) Eric Johnson Strategic Planning & ERP Implementation Hillsborough County BOCC (813)
43 City of Tampa ContactJ. Michael Fitzgerald, Jr. Accounting Manager City of Tampa Accounting Office (813)